Methodological explanations of the measurement of creative economy

Transcription

1 CER Statistical Annex Explanatory notes This explanatory note summarizes the content of each part of this annex and a detailed explanation of UNCTAD model for creative economy trade statistics. The data presented in the Annex derives from UNCTAD Global database on creative economy, which provides free access to its content worldwide. The tables on trade statistics for creative goods and related goods are based on official statistics reported by national sources to the United Nations COMTRADE using 2002 version of the Harmonized System (HS 2002). As regards data on creative services, they were extracted from the IMF Balance of Payments Statistics using BPM5 and EBOPS codes and further elaborated and processed by the UNCTAD secretariat. Efforts were made to present a universal coverage by providing trade data for all 192 Member States of the United Nations. However, for some developing countries, data are not available throughout the years for the full time-series Therefore, the total number of reporting countries in each year is not necessarily the same. Thus, the value of world in any table presents only the sums of the total number of reporting countries in a specific year, and these figures should be treated with caution when used as an analytical tool. The unavailability of statistics is further accentuated by the category of creative services, and this is the case even in developed countries such as the France, Japan, United Kingdom and the United States. The value of total exports and imports in each table on creative services is inevitably underestimated. Additional, two examples of country profiles are provided before all statistics tables. These examples not only show a country's creative industries trade performance, but also demonstrate the multiple possibilities for analytical tool offered by the UNCTAD Global database on creative economy. The country profile presents statistical information for the selected years of 2002 and 2008, with a breakdown of all creative goods and services by sectors in order to facilitate understanding of the evolution and the sector-specific performance. The first part of the country profile summarises a national trade performance including trade balance and a time series information from 2002 to 2008, including a detailed disaggregation by product groups. In part two, the profile surveys the country's major trade partners of creative goods and illustrates some important issues positioning the selected countries in the context of their respective regions. More detailed data at the country and sectoral levels are available and can be consulted through the website of UNCTAD Global database on creative economy: A comprehensive user guide is provided in the website, with a view to facilitate its manipulation by end-users to extract trade statistics data and subsequently generate detailed product and country-level information to conduct economic analysis. In certain instances, the electronic version might contain different figures from those in this report as they will be constantly updated in order to present the latest available data. Methodological explanations of the measurement of creative economy Part1. Creative goods As noted earlier, the compilation of trade data presented in this annex is based on the 2002 version of the Harmonized System (HS 2002). A summary of selected HS 2002 codes for

2 creative goods in each subgroup is listed below. The reasons to use HS 2002 instead of HS 1996 have been explained in Chapter 4. After the comparative analysis of various statistical methodologies, 211 codes were selected from the list of HS 2002 based on the UNCTAD classification and methodology for a trade model for creative industries as presented in chapter 4 of this Report. An evidence-base comparison is made with the 2009 UNESCO Framework for Cultural Statistics, the EUROSTAT's pocketbook of cultural statistics and other relevant references for trade statistics for creative goods and services. Given the complexity of making clear distinctions and defining the borderline between a creative good that is exclusive and mass production, between handmade and machine-made, between decorative and functional, etc., this exercise of compiling statistics for creative goods includes all the creative goods with the above characteristics since they fall under the criteria of the UNCTAD classification of the cycle of creation, production and distribution of a tangible product with creative content, economic and cultural value and a market objective. The number of codes included in each creative sector is as follows: design, 102 codes; art crafts, 60 codes; visual arts, 17 codes; publishing, 15 codes; performing arts, 7 codes; new media, 8 codes; and audiovisuals, 2 codes, summarized as follows: Design. This is the biggest subgroup, with 102 codes. The number of codes in each subsector is as follows: architecture, 1; fashion, 37; interior, 32; toys, 17; jewellery, 10; and glassware, 5. architecture original drawings for architectural plans fashion handbags, belts, accessories (ties, shawls, scarves, gloves, hats, hairpins, etc), sunglasses, headgear, leather goods, etc. Clothing and shoes are not included. interior furniture (living room, bedroom, kitchen, bathroom), tableware, table linen, wallpaper, glassware, porcelain, lighting sets, etc. toys dolls, wheeled toys, electric trains, puzzles, games, etc. jewellery articles of jewellery made from gold, silver, pearls and other precious metals as well as imitation jewellery. Arts and crafts. This is the second largest subgroup, covering a total of 60 codes. The number of codes in each sector is as follows: carpets, 17; yarn, 30; wickerware, 4; celebration, 2; paperware, 1; others, 6. carpet includes carpets of wool or other fine animal hair, cotton, coconut fibers and other plant fiber, knotted or woven. yarn handmade lace, hand-woven and needlework rugs, embroidery, bed linen, manmade or printed, knitted or crocheted materials, etc. wickerware plaits, mats, basketwork, wickerwork, etc. celebration articles for Christmas, festivities, carnivals, etc. paperware handmade paper. others candles, tanned or dressed fur skins, artificial flowers, wood marquetry, etc. Visual arts. This sector covers 17 codes. The number of codes in each subsector is as follows: photography, 4; painting, 3; sculpture, 7 and antiques, 3.

3 photography photographic plates for offset reproduction; photographic film and microfilms, exposed and developed. painting paintings, pastels executed by hand, wooden frames for paintings. sculpture statuettes and other ornamental articles of wood, porcelain, ceramics, ivory or other metals, worked carving materials. antiques antiques more than one hundred years of age. Publishing. There are 15 codes in this subgroup. The number of codes in each subsector is as follows: newspapers, 3; books, 4 and other printing matter, 8. newspapers newspapers, journals and periodicals. books books, dictionaries, encyclopedias, brochures, leaflets, children s drawing and coloring books and other printed matter. other printing matter maps, brochures, postcards, calendars, advertising materials, etc. Performing arts. Has 7 codes. It covers 6 types of recorded laser discs and recorded magnetic tapes as well as printed or manuscript music. New media. This subgroup has 8 codes: 6 code for recorded media for sound and image, and 2 codes for video games. Audiovisuals. This subgroup has 2 codes; only 2 types of exposed cinematographic film are included in this subgroup. Part 2. Creative services Data on trade in services by category of service rendered are becoming more available for developing countries as well. Generally aligned with the definitions of the IMF Balance of Payments Manual, figures for trade in services, comparable across the world, are found mainly in the IMF Balance of Payments Statistics database and, more recently, in the United Nations Statistics Division Services Trade database. EUROSTAT and OECD also collect data for their member countries, as do other regional organizations. However, the available data disaggregated by category of services do not provide the detail necessary for drawing conclusions about the impact of creative-services activities on economies. The 11 principal BOP categories of services cover many aspects of creative industries that cannot be separately extracted. The Extended Balance of-payments Services Classification (EBOPS) presented in the Manual on Statistics of International Trade in Services (MSITS, 2002) still does not offer categories detailed enough to enable the designation of the creative-industry services rendered. Nevertheless, what is offered in the MSITS and further elaborated in this study are the elements of Central Product Classification (CPC) that can be related to EBOPS categories and that directly cover creative industries. The data on such a detailed level are rarely internationally reported and assembled on a comparable basis (CPC 5-digit-level items are usually necessary).

4 What countries report at the moment that was identified as covering creative industries but not exclusively is the following categories of services: advertising, market research and public opinion services (EBOPS 278, level 3); architectural, engineering and other technical services (EBOPS 280, level 3); research and development services (EBOPS 279, level 3); personal, cultural and recreational services (EBOPS 287, level 1); audiovisual and related services (EBOPS 288, level 2); other personal, cultural and recreational services (EBOPS 897, level 3). The definitions of each category of services are from the fifth edition of the IMF Balance of Payments Manual are listed below: (also available at and Advertising and market research and public opinion polling services (Advertising): Advertising and market research services transacted between residents and non-residents cover the design, creation, and marketing of advertisements by advertising agencies; media placement, including the purchase and sale of advertising space; exhibition services provided by trade fairs; the promotion of products abroad; market research; and public opinion polling abroad on various issues. Architectural, engineering and other technical services (Architectural): Architectural, engineering and other technical services cover resident and nonresident transactions related to architectural design of urban and other development projects; planning and project design and supervision of dams, bridges, airports, turnkey projects, etc.; surveying, cartography, product testing and certification, and technical inspection services. Research and development services (R&D): Research and development services cover those services that are transacted between residents and non-residents and associated with basic research, applied research, and experimental development of new products and processes. In principle, such activities in the sciences, social sciences and humanities are covered; included is the development of operating systems that represent technological advances. Personal, cultural, and recreational services (Personal recreation): Personal, cultural, and recreational services involving transactions between residents and non-residents are subdivided into two categories: (a) Audiovisual and related services (Audiovisual). The first category comprises services and associated fees related to the production of motion pictures (on film or video tape), radio and television programs (live or on tape), and musical recordings. Included are receipts or payments for rentals; fees received by resident actors, directors, producers, etc. (or by nonresidents in the compiling economy) for productions abroad; and fees for distribution rights sold to the media for a limited number of showings in specified areas. Fees to actors, producers, etc. involved with theatrical and musical productions, sporting events, circuses, etc. and fees for distribution rights (for television, radio, etc.) for these activities are included. (b) other personal, cultural and recreational services (Other cultural services). The second category comprises other personal, cultural, and recreational services such as those associated with museums, libraries, archives, and other cultural, sporting, and recreational activities. Also included are fees for services, including provision of correspondence courses, rendered abroad by teachers or doctors.

5 Obviously, it is not possible to arrive at conclusive comparative results on the real performance of services outputs of creative industries in international trade based on incomplete figures. This is especially the case in that national statistics, when available, do not always follow precisely the internationally accepted definitions and guidelines owing to particular priorities and data collection systems of different States. The statistics for categories of services cover much more activities than what would belong to the creative economy alone, with the exception of audiovisual and related services, which can be attributed largely to creative industries. In addition, the subcategory Other personal, cultural and recreational services could also be assumed to incorporate trade closely related to creativity, bearing in mind, however, that this subcategory still includes international services trade relating to sporting events (health and education are not covered). All the figures used to calculate growth rates by category of services are to be viewed with caution since they refer, of course, to the limited number of countries that consistently reported on them (only to countries reporting a particular service regularly between 2003 and 2008). The numbers in parentheses after percentages represent the number of countries used in the calculation. Creative services, average annual growth rate, for exports of the reporting countries, Categories of services Growth rate (%) All creative services 17.1 (23) Advertising, market research and public opinion polling services 18.4 (38) Architectural, engineering and other technical services 20.9 (31) Research and development services 14.8 (27) Personal, cultural, and recreational services 10.4 (76) Audiovisual and related services 11.0 (43) Other personal, cultural, and recreational service 7.3 (47) Note: The calculation of annual average growth rate is based on countries that reported consistently in , the numbers in parentheses after percentages represent the number of countries used in the calculation. Source: UNCTAD calculations based on IMF Balance of Payments Statistic Creative services, average annual growth rate, for imports of the reporting countries, Categories of services Growth rate (%) All creative services 13.0 (23) Advertising, market research and public opinion polling services 13.9 (46) Architectural, engineering and other technical services 16.5 (34) Research and development services 13.0 (26) Personal, cultural, and recreational services 8.6 (81) Audiovisual and related services 8.9 (48) Other personal, cultural, and recreational service 7.9 (54) Note: The calculation of annual average growth rate is based on countries that reported consistently in , the numbers in parentheses after percentages represent the number of countries used in the calculation. Source: UNCTAD calculations based on IMF Balance of Payments Statistic For the presentation convenience, a short title is apply to 'advertising, market research and public opinion services' as 'advertising and related services' as well as ' architectural, engineering and other technical services' is shorten as ' architectural and related services'. These short titles are applied to all statistics tables in chapter 5 and in the statistical annex, with the aim to facilitate understanding by the readers. A decision was taken to present in this Report the state-of-the-art evidence base, including the international trade flows on creative goods and services, even if the work of UNCTAD

6 in this area is in its preliminary stage and the results that are being shared are partial and in an incomplete form owing to gaps in data availability. Our main concern was to present what is possible at present on the basis of available data; certainly, much more work is needed. In our continued efforts to compile and analyze more disaggregated and reliable data for creative services, the UNCTAD secretariat presents its desired wishing list with statistics codes, in order to encourage individual countries to report better figures for trade in services related to the creative industries in the near future. Part3. Related industries The trade figures presented for related industries cover those goods produced by industries related to creative activities, that is, supporting industries or equipment needed to produce or consume creative content. The figures provided in the annex are included for the purpose of market transparency and as a tool for analysis of future demand. These trade figures for related industries are not included in the totals of creative industries. Along with updating the list of creative goods, the list of related goods is also reviewed and updated. After a carefully comparison with 2009 UNESCO FCS list of 'equipment and supporting materials of cultural goods' and other statistical methodologies, UNCTAD selected 170 codes in the list of HS 2002 for creative industries related goods. The number of codes included in each sector is: visual arts, 49 codes; design, 35 codes; publishing, 11 codes; Performing arts, 28 codes; and audiovisuals, 42 codes. The tables present the same analysis as those for creative industries (see chapter 5 for further details). As mentioned in chapter 4, the values of exports and imports of 'royalties and licence fees' and 'computer and information services' are introduced in this group but not included in the total for creative services. The definitions of these two services are from the fifth edition of the IMF Balance of Payments Manual (BPM5): Royalties and license fees (Royalties): royalties and license fees covers receipts (exports) and payments (imports) of residents and nonresidents for (i) the authorized use of intangible non-produced, non-financial assets and proprietary rights such as trademarks, copyrights, patents, processes, techniques, designs, manufacturing rights, franchises, etc. and (ii) the use, through licensing agreements, of produced originals or prototypes such as manuscripts, films, etc. Computer and information services: 'computer and information services' covers computer data and news-related service transactions between residents and nonresidents. Included are data bases, such as development, storage, and on-line time series; data processing including tabulation, provision of processing services on a time-share or specific (hourly) basis, and management of facilities of others on a continuing basis; hardware consultancy; software implementation including design, development, and programming of customized systems; maintenance and repair of computers and peripheral equipment; news agency services including provision of news, photographs, and feature articles to the media; and direct, non-bulk subscriptions to newspapers and periodicals.

7 UNCTAD proposed "wishing list" for creative services based on EBOPS codes EBOPS EBOPS CLASSIFICATION VISUAL ARTS CPC 2.0 EXPLAINATION 284 Photography Portrait photography services Advertising and related photography services Event photography and event videography services Specialty photography services Restoration and retouching services of photography Other photography services Photographic processing services Painting sculptures & Services of authors, composers, sculptors and other artists, except performing artists PERFOMING ARTS Performing arts event promotion and organization services Performing arts event production and presentation services Performing arts facility operation services Other performing arts and live entertainment services Services of performing artists 288 Music Sound recording services Live recording services Reproduction services of recorded media, on a fee or contract basis Musical instrument manufacturing services PUBLISHING SERVICES Publishing, on a fee or contract basis Printing services Services related to printing News agency services to newspapers and periodicals AUDIOVISUAL AND RELATED SERVICES 288 Radio & television Broadcasting services Radio programme production services Audiovisual editing services Transfers and duplication of masters services Colour correction and digital restoration services Visual effects services Animation services Captioning, titling and subtitling services Sound editing and design services Other post-production services Home programme distribution services, basic programming package Home programme distribution services, discretionary programming package Home programme distribution services, pay-per-view

8 News agency services to audiovisual media 288 Film Motion picture, videotape and television programme production services Motion picture, videotape and television programme distribution services Motion picture projection services DESIGN 284 Interior Interior design services Furniture manufacturing services Jewellery Jewellery manufacturing services Imitation jewellery manufacturing services Toy Game and toy manufacturing services NEW MEDIA Digital content online On-line books On-line newspapers and periodicals Musical audio downloads Streamed audio content Films and other video downloads Streamed video content On-line games On-line software CREATIVE SERVICES Advertising 278 services Full service advertising Direct marketing and direct mail services Other advertising services Purchase or sale of advertising space or time, on commission Sale of advertising space in print media (except on commission) Sale of TV/radio advertising time (except on commission) Sale of Internet advertising space (except on commission) Sale of other advertising space or time (except on commission) 280 Architectural services Architectural advisory services Architectural services for residential building projects Architectural services for non-residential building projects Historical restoration architectural services 897 Cultural recreational services and Library services Archive services Museum services except for historical sites and buildings Preservation services of historical sites and buildings Botanical and zoological garden services Amusement park and similar attraction services Coin-operated amusement machine services

9 ROYALTIES AND LICENSE FEES Leasing or rental services concerning video tapes and disks Licensing services for the right to use computer software Licensing services for the right to use databases Licensing services for the right to use entertainment, literary or artistic originals Licensing services for the right to use R&D products Licensing services for the right to use other intellectual property products